Agricultural Recession

Agricultural Recession was the first sign to the Great DepressionHerbert Hoover said that "Farmers had always been poor" and ignored them and didn't do any thing to helpHoover took a Laissez faire capitalism approach to the economyThings were being Produced couple of seasons of bad weather is what started the Recession

Buying on the Margin

Borrowing money to buy stocks in the hopes that stocks will go up and they will be able to pay back the loneBad if the stock market crashes, which it did People threw themselves out of buildings when the market crashed Businesses went bankrupt Banks close and went bankrupt as wellthus the Depression begins

Black Tuesday, October 22, 1929:Stock Market Crash

In on day it drops by about 50%People commit suicides Took a long time for them to bounce back Banks were going bankrupt Not federally enforced at that time Big catalysts to the great depression

Summary

While buying on the margin would be a successful way of making money before the market crashed it was dangerous and even if you had money in the bank you still lost it because the bank was not federally insured yet. Both Black Tuesday and the Agricultural Recession were catalysts to the Great Depression.